The sky is the limit in 2022

Over the past decade, leading wealth managers have built sensational businesses by creating value for the ultra-rich. This year will most likely be an even better year for wealth managers who understand the key dynamics and trends impacting the private wealth industry.

Simply put, whether markets rise or fall, whether the economy booms or crashes, whether there are national and international crises ranging from a deadly resurgence of Covid-19 to a host of natural disasters to everything which is not an apocalyptic event, elite wealth managers will do very, very well. To be clear, this is only possible because they do an exceptional job of adding value to their ultra-wealthy clients.


The benefits of working with the ultra-rich
Undoubtedly, there are more ultra-wealthy families (net worth = US$30 million or more) than ever before and their ranks are expected to increase in 2022. Moreover, not only will the number of ultra-wealthy families increase, but the amount of assets they control will likely grow at an even faster rate.

For elite wealth managers, the ultra-rich are very good clients. According to Vince Annable, CEO and Founder of VFO Advisory Group and author of The Household Endowment Model: Wealth Planning for Affluent Families“We find that the ultra-rich prefer the family office approach because we are able to help them achieve their financial goals, but we are also able to help them improve other aspects of their lives, such as the quality of health care they receive. Quite often, many ultra-rich fail to optimize their lives, including missing out on opportunities. We specialize in filling the gap. We act as a coordinator to bring in all of their financial experts to discuss their most important needs A roundtable of experts to discuss all areas of their wealth management needs.

While almost everyone wants a bargain, the ultra-rich are intensely results-oriented and appreciate the perks the best professionals can offer. They are generally NOT concerned with cost when provided with demonstrable value. “When you show the ultra-rich the connection between your knowledge, skills, and effort with the results they can achieve, cost discussions are minimized or eliminated,” says Homer Smith, private wealth advisor and founder of Konvergent Wealth Partners and Director of the Integrated Business Owner Solutions Team. “That doesn’t mean we don’t do everything in our power to make sure the solutions we provide are cost-effective. We also strive to minimize costs for our customers.

Another advantage of the ultra-rich as customers is that they are able and comfortable making decisions. Like Anthony Glomski, president and founder of AG Asset Advisory Family Office and author of Liquidity and You: A Personal Guide for Tech and Business Entrepreneurs Approaching an Exit explains: “Although the ultra-rich often consult various professionals, they are generally able to determine what they want or understand what they need. They then tend to know what they are going to do. They will take action when it suits their personal interests. My job is to make sure they have all the information and answers they need to make informed decisions.


What is required to excel with the ultra rich
Being able to connect with the ultra-rich is paramount to excelling in 2022. “The ultra-rich have vast personal and professional networks and are very likely to have a strong influence within these ecosystems,” says Hannah Shaw Grove , Director of Marketing. at the Source Foundation and co-author of The Family Office: advising the financial elite. “By studying the mindsets and wealth creation methodologies of self-made millionaires and billionaires, we know that the ease of building powerful relationships is a major factor in their success. When wealth managers consistently deliver significant value to their ultra-high net worth clients, they are positioning themselves and their practices to benefit from the relationship capital within their client base.

At the same time, one of the most powerful ways to connect with the ultra-rich is to be referred by a trusted professional they are currently hiring. According to Brett Van Bortel, director of advisory services at Invesco Global Consulting and co-author of Smart Networking on the Street: How Financial and Legal Professionals Can Cultivate Centers of Influence for a Flood of New High Net Worth Clients, “There are proven methodologies that allow professionals, including wealth managers, to create pipelines of new ultra-rich clients. The benefit of these processes is twofold: a steady stream of ideal leads and an accelerated sales cycle. In fact, professionals who master these processes can often walk away from a first or second encounter with high-potential ultra-wealthy clients. »

Another requirement is expertise. “Being able to do exceptional work for the ultra-rich is a necessity,” says Peter Sasaki, director member of the SDS Family office and co-author of Maximizing Your Single-Family Office: Leveraging the Power of Outsourcing and Stress Testing. “Now, there is no way for a professional to be able to cater to the diverse needs and desires of the ultra-rich. That is why building a cohesive team of top experts is so important. Experts should not only to be the best in their field, they must know how to work well with others on behalf of the client.”

Just as important as expertise is the ability to develop a deep understanding of ultra-wealthy individuals and families. “No wealth manager can deliver exceptional value to the ultra-rich unless they truly understand their goals and concerns,” says Cliff Oberlin, chairman and CEO of Oberlin Wealth Partners and co-author of Family Fortunes: How Family Businesses Thrive Across Generations, “We work very hard to get to know the families that are presented to us so that we can offer them the best possible wealth management solutions. We rely on a process called Everyone Wins to discover precisely how we can meaningfully improve the lives of our customers. »


Sky is the limit
There will certainly be a plethora of problems – of one type or another – in 2022. But, even if the markets and the economy are experiencing a downturn, elite wealth managers will continue to excel. There have always been, and always will be, a large number of ultra-wealthy families seeking smart and related financial advice.

Elite wealth managers, because they can consistently connect with the ultra-rich and are intensely focused on delivering financial solutions that make a major difference, will continue to grow their businesses dramatically. For these elite wealth managers because they are (1) process-oriented so they can connect with the ultra-rich, (2) highly technically savvy largely due to their cohesive teams and (3) keenly attuned to their issues surrounding their ultra-wealthy -high net worth clients, the sky’s the limit.


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Dolores W. Simon